District Of Columbia 2023 2023-2024 Regular Session

District Of Columbia Council Bill B25-0649 Engrossed / Bill

Filed 01/09/2024

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A BILL 1 
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25-649 3 
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5 
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To amend, on a temporary basis, the Legalization of Marijuana for Medical Treatment Initiative 10 
of 1999 to provide the Alcoholic Beverage and Cannabis Administration the ability to 11 
extend the 45-calendar day public comment period for cultivation center, retailer, or 12 
internet retailer licenses to an unlicensed establishment by an additional 30-calendar 13 
days, to clarify which persons have standing to protest the issuance of a cultivation 14 
center, retailer, or internet retailer license to an unlicensed establishment, to align the 15 
enforcement procedures with those provided in Title 25 of the District of Columbia 16 
Official Code, and to clarify that the Alcoholic Beverage and Cannabis Board has the 17 
authority to issue cease-and-desist orders mandating compliance with the provisions of 18 
the Medical Cannabis Program; and to amend the Medical Cannabis Amendment Act of 19 
2022 to clarify that the Alcoholic Beverage and Cannabis Board has authority to enforce 20 
against commercial property owners in whose properties are used to operate illegal 21 
cannabis businesses. 22 
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 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 24 
act may be cited as the “Medical Cannabis Program Enforcement Temporary Amendment Act of 25 
2024”. 26 
 Sec. 2. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 27 
February 25, 2010 (D.C. Law 13-315; D.C. Official Code § 7-1671.01 et seq.), is amended as 28 
follows: 29 
 (a) Section 7 (D.C. Official Code § 7-1671.06) is amended by adding a new subsection 30 
(c-1) to read as follows: 31    	ENGROSSED ORIGINAL 
 
 
 
 
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“(c-1) It shall be a violation of this act for any unlicensed or licensed cultivation center, 32 
manufacturer, retailer, or internet retailer to represent that goods or services or the business is 33 
compliant with the Legalization of Possession of Minimal Amounts of Marijuana for Personal 34 
Use Initiative of 2014, effective February 26, 2015 (D.C. Law 20-153; D.C. Official Code § 35 
passim); provided, that a licensed cultivation center, manufacturer, retailer, or internet retailer 36 
may have signage indicating that there is medical cannabis on the property.”. 37 
(b) Section 7a(h) (D.C. Official Code § 7-1671.06a(h)) is amended to read as follows: 38 
 “(h)(1) The ABC Board shall provide notice of complete and eligible cultivation center, 39 
retailer, and internet retailer license applications received from unlicensed establishments to the 40 
Councilmember, and any Advisory Neighborhood Commission within 600 feet of where the 41 
establishment is or will be located (“affected ANC”), for a 45-calendar day public comment 42 
period. The ABC Board may extend the public comment period required by this paragraph in 43 
response to a written request submitted by either an affected ANC or the applicant by an 44 
additional 30-calendar days. 45 
 “(2) An affected ANC may protest the issuance of the license. 46 
“(3) The ABC Board shall hold a contested case protest hearing within 120 days 47 
of receiving a timely protest from an affected ANC pursuant to paragraph (2) of this subsection.  48 
“(4) The provisions of this subsection shall apply to all applications submitted to 49 
ABCA after the effective date of the Medical Cannabis Program Enforcement Emergency 50    	ENGROSSED ORIGINAL 
 
 
 
 
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Amendment Act of 2024, passed on emergency basis on January 9, 2024 (Enrolled version of 51 
Bill 25-XXX).”. 52 
 (c) Section 7b (D.C. Official Code § 7–1671.06b) is amended by adding a new subsection 53 
(e) to read as follows: 54 
 “(e) An unlicensed establishment shall not display signage or imagery advertising 55 
relating to: 56 
 “(1) The prices of cannabis or cannabis product in the window;  57 
 “(2) Cannabis or a cannabis product on the exterior of any window or on the 58 
exterior or interior of any door; or  59 
 “(3) Cannabis or a cannabis product on the exterior or visible from the exterior of 60 
the unlicensed establishment or elsewhere in the District.”.  61 
 (d) Section 9 (D.C. Official Code § 7–1671.08) is amended as follows: 62 
(1) Subsection (d) is amended by striking the phrase “licensed cultivation” and 63 
inserting the phrase “licensed or unlicensed cultivation” in its place.  64 
(2) A new subsection (f) is added to read as follows: 65 
 “(f) Beginning January 31, 2024, the ABC Board may issue the following fines to an 66 
unlicensed establishment that violates section 7(c-1) or 7b(e), or has not filed an accepted and 67 
pending application with the ABC Board and knowingly engages or attempts to engage in the 68 
purchase, sale, exchange, delivery, or any other form of commercial transaction involving 69 
cannabis that is not purchased, sold, exchanged, or delivered in accordance with the provisions 70    	ENGROSSED ORIGINAL 
 
 
 
 
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of this act or section 401 of the District of Columbia Uniform Controlled Substances Act of 71 
1981, effective August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01): 72 
 “(1) For the first violation, the ABC Board may issue a written warning to the 73 
unlicensed establishment; 74 
 “(2) For the second violation, the ABC Board may: 75 
“(A) Issue a fine in the amount of $10,000; and  76 
“(B) Require the unlicensed establishment to submit a remediation plan to 77 
the ABC Board that contains the unlicensed establishment’s plan to prevent any future 78 
recurrence of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis 79 
that is not purchased, sold, exchanged, or delivered in accordance with the provisions of this act 80 
or section 401 of the District of Columbia Uniform Controlled Substances Act of 1981, effective 81 
August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01); and 82 
 “(3) For any subsequent violations or if the unlicensed establishment fails to 83 
submit a remediation plan in accordance with paragraph (2) of this subsection, or if the ABC 84 
Board rejects the unlicensed establishment’s remediation plan, the ABC Board may issue 85 
additional fines.”.  86 
 (e) Section 13a (D.C. Official Code § 7–1671.12a) is amended as follows: 87 
 (1) Subsection (a) is amended by striking the phrase “Board or the Mayor” both 88 
times it appears and inserting the word “Board” in its place.  89    	ENGROSSED ORIGINAL 
 
 
 
 
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 (2) Subsection (d) is amended by striking the phrase “Board or the Mayor” and 90 
inserting the word “Board” in its place. 91 
 (3) Subsection (f) is amended by striking the phrase “Board or the Mayor” and 92 
inserting the word “Board” in its place. 93 
 (f) New sections 15, 16, 17, and 18 are added to read as follows: 94 
 “Sec. 15. Examination of premises, books, and records. 95 
 “(a) An applicant for a license, and each licensee, shall allow any ABCA investigator, 96 
agent of the ABC Board, or any member of the Metropolitan Police Department full opportunity 97 
to examine, at any time during business hours: 98 
“(1) The premises where a cannabis product is manufactured, kept, sold, or 99 
consumed for which an application for a license has been made or for which a license has been 100 
issued; and 101 
“(2) The books and records of the business for which an application for a license 102 
has been made or for which a license has been issued. 103 
“(b) ABCA investigators shall examine the premises and books and records of each 104 
licensed establishment in the District at least once each year. The investigators shall make 105 
reasonable efforts to ensure that the licensee shall know in advance the date of the inspection. 106 
 “Sec. 16. Search warrants for illegal cannabis products; disposition of seized products. 107 
 “If a search warrant is issued by any judge of the Superior Court of the District of 108 
Columbia or by a United States Magistrate for the District of Columbia for premises where any 109    	ENGROSSED ORIGINAL 
 
 
 
 
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cannabis products are sold, exchanged as part of a commercial transaction, delivered, or 110 
permitted to be consumed in violation of this title, the cannabis product and any other property 111 
designed for use in connection with the unlawful manufacture for sale, keeping for sale, selling, 112 
or consumption may be seized and shall be subject to such disposition as the court may make 113 
thereof. 114 
 “Sec. 17. Notifications from Department of Licensing and Consumer Protection, Office 115 
of Tax and Revenue, Fire and Emergency Medical Services Department, and Metropolitan Police 116 
Department. 117 
 “(a) The Department of Licensing and Consumer Protection, the Office of Tax and 118 
Revenue, and the Fire and Emergency Medical Services Department shall notify the ABC Board 119 
if a licensed establishment is the subject of a citation, revocation, or other enforcement action for 120 
a violation of laws or regulations enforced by those agencies or offices within 30-calendar days 121 
after the citation, revocation, or other enforcement action. 122 
“(b) If a licensed establishment is the subject of an incident report by the Metropolitan 123 
Police Department, the Metropolitan Police Department shall file a copy of the incident report 124 
with the ABC Board within 30-calendar days after the incident. The ABC Board shall make the 125 
report available for public inspection upon request. 126 
 “Sec. 18. Nuisance.  127 
 “(a) Any building, ground, or premises where cannabis is sold, exchanged as part of a 128 
commercial transaction, delivered, or permitted to be consumed by an unlicensed establishment 129    	ENGROSSED ORIGINAL 
 
 
 
 
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shall be a nuisance, except any building, ground, or premises of an applicant that filed an 130 
accepted and pending application with the Board during the 90-calendar day open application 131 
period. 132 
“(b) An action to enjoin any nuisance defined in subsection (a) of this section may be 133 
brought in the name of the District of Columbia by the Attorney General for the District of 134 
Columbia in the Civil Branch of the Superior Court of the District of Columbia against any 135 
person conducting or maintaining such nuisance or knowingly permitting such nuisance to be 136 
conducted or maintained.”. 137 
 Sec. 3. The Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. 138 
Law 24-332; 70 DCR 1582), is amended as follows: 139 
(a) Section 8 (D.C. Official Code § 7-1675.01) is amended as follows: 140 
(1) Subsection (a) is amended as follows: 141 
(A) Paragraph (1) is amended as follows: 142 
(i) The lead-in language is amended by striking the phrase 143 
“Alcoholic Beverage and Cannabis Administration makes final determinations for the licensure 144 
of unlicensed establishments pursuant to §§ 7-1671.06a and 7-1671.06b, for the first violation 145 
of D.C. Official Code § 47-2844(a-2)(1B), the Mayor” and inserting the phrase “Alcoholic 146 
Beverage and Cannabis Board (“ABC Board”) makes final determinations for the licensure of 147 
unlicensed establishments pursuant to sections 7a and 7b of the Legalization of Marijuana for 148 
Medical Treatment Initiative of 1999, effective March 22, 2023 (D.C. Law 24-332; D.C. Official 149    	ENGROSSED ORIGINAL 
 
 
 
 
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Code §§ 7-1671.06a and 7-1671.06b), for the first violation of section 9(f) of the Legalization of 150 
Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; 151 
D.C. Official Code § 7-1671.08(f)), the ABC Board ” in its place. 152 
(ii) Subparagraph (C) is amended by striking the phrase “D.C. 153 
Official Code § 47-2844(a-2)(1B)” and inserting the phrase “section 9(f) of the Legalization of 154 
Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; 155 
D.C. Official Code § 7-1671.08(f))” in its place.  156 
(B) Paragraph (2) is amended by striking the phrase “provided to the 157 
Alcoholic Beverage and Cannabis Administration,” and inserting the phrase “provided to” in its 158 
place.  159 
(2) Subsection (b) is amended as follows: 160 
 (A) The lead-in language is amended by striking the phrase “D.C. Official 161 
Code § 47-2844(a-2)(1B)” and inserting the phrase “section 9(f) of the Legalization of Marijuana 162 
for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. 163 
Official Code § 7-1671.08(f))” in its place. 164 
(B) Paragraph (1) is amended by striking the phrase “The Mayor” and 165 
inserting the phrase “The ABC Board” in its place. 166 
 (C) Paragraph (2) is amended as follows: 167 
 (i) Subparagraph (A) is amended to read as follows: 168    	ENGROSSED ORIGINAL 
 
 
 
 
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“(2)(A) The ABC Board shall require the commercial property owner to submit a 169 
remediation plan within 14 days after the notice of a fine under paragraph (1) of this subsection 170 
to the ABC Board that contains the commercial property owner's plan to prevent any future 171 
violations of section 9(f) of the Legalization of Marijuana for Medical Treatment Initiative of 172 
1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.08(f)).”. 173 
 (ii) Subparagraph (B) is amended by striking the phrase “the 174 
Mayor, in consultation with the Director of the Department of Licensing and Consumer 175 
Protection, rejects the commercial property owner's remediation plan, the Mayor may issue 176 
additional fines or revoke the commercial property owners’ licenses” and inserting the phrase 177 
“the ABC Board rejects the commercial property owner’s remediation plan, the ABC Board may 178 
issue additional fines” in its place. 179 
(3) Subsection (c) is amended as follows: 180 
 (A) Paragraph (1) is amended by striking the phrase “Office of 181 
Administrative Hearings” and inserting the phrase “Alcoholic Beverage and Cannabis Board 182 
(“ABC Board”)” in its place. 183 
 (B) Paragraph (2) is amended by striking the phrase “Office of 184 
Administrative Hearings” and inserting the phrase “ABC Board” in its place. 185 
 (C) Paragraph (3) is amended by striking the phrase “administrative law 186 
judge” and inserting the phrase “ABC Board” in its place. 187    	ENGROSSED ORIGINAL 
 
 
 
 
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 (4) Subsection (e)(1) is amended by striking the phrase “Office of Administrative 188 
Hearings” and inserting the phrase “ABC Board” in its place.  189 
(b) Section 9 is amended as follows: 190 
(1) Subsection (a) is amended by striking the phrase “7, and 8” and inserting the 191 
phrase “and 7” in its place. 192 
(2) Subsection (c)(2) is amended by striking the phrase “this act” and inserting the 193 
phrase “the provisions identified in subsection (a) of this section” in its place.  194 
 Sec. 4. Fiscal impact statement.  195 
 The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 196 
statement required by section 4a of the General Legislative Procedures Act of 1975, approved 197 
October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).  198 
 Sec. 5. Effective date.  199 
 (a) This act shall take effect following approval by the Mayor (or in the event of veto by 200 
the Mayor, action by the Council to override the veto), a 30-day period of congressional review 201 
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 202 
24, 1973 (87 Stat. 813; D.C. Official Code §1-206.02(c)(1)), and publication in the District of 203 
Columbia Register. 204 
 (b) This act shall expire after 225 days of its having effect. 205